Global Fixed Income Process | Liontrust Asset Management PLC

Meet the team

The Global Fixed Income team has an average industry experience of 24 years. Before joining Liontrust in early 2018, David Roberts and Phil Milburn worked together at Kames Capital for 14 years, where David was Head of the Fixed Income team and Phil was Head of Investment Strategy. They launched one of the first strategic bond funds in 2003 and have been investing in high yield on a global basis from the same time. Donald Phillips also joined Liontrust in 2018 and worked with David and Phil at Kames Capital for three years. Before Liontrust, Donald was an investment manager in the Credit team at Baillie Gifford, being co-manager of the Baillie Gifford High Yield Bond Fund from June 2010 to 2017 and the US High Yield strategy.

David Roberts

David Roberts joined Liontrust in January 2018 from Kames Capital to co-create the Liontrust Global Fixed Income team. David was previously Head of Fixed Income at Kames Capital and since 1988 has also worked at Britannia Investment Managers and Lloyds Bank. Read more

Phil Milburn

Phil Milburn joined Liontrust in January 2018 from Kames Capital to co-create the Liontrust Global Fixed Income team. Phil previously spent over 20 years at Kames Capital, launching one of the market’s first strategic bond funds and developing a leading high-yield franchise. Read more

Donald Phillips

Donald Phillips joined Liontrust in February 2018 from Baillie Gifford to co-create the Liontrust Global Fixed Income team. Donald had been co-managing the European high-yield strategy at Baillie Gifford since 2010 and previously worked at Kames Capital from 2005 to 2008. Read more

Our investment process

The process is designed to take advantage of inefficiencies in fixed income markets through a thorough understanding of the economic environment and detailed bottom up stock analysis.

The process uses the same framework to garner a thorough understanding of the economic environment and for bottom up stock analysis: fundamentals, valuations and technicals (FVT).

These three factors are examined regardless of whether the managers are considering a duration position or an investment in a speculative grade rated company. In judging whether a company is attractive long-term investment, the managers analyse the following factors, which they call PRISM.

Protections: operational and contractual, such as structure and covenants
Risks: credit, business and market
Interest cover: leverage and other key ratios
Sustainability: of cash flows and environmental, social and governance (ESG) factors
Motivations: of management and shareholders

Funds managed by the team

The fund managers believe fixed income markets are inefficient and there are myriad ways of adding value to investors’ portfolios. The inefficiencies are caused by many market protagonists who are not price sensitive, ranging from the macroeconomic distortions caused by central banks to the idiosyncratic scenarios when companies need to raise debt finance and price accordingly.

Global Fixed Income Strategic Bond Fund

The Fund invests in credit securities and government bonds globally, seeking to take advantage of market inefficiencies through understanding the economic environment, bottom up stock analysis and flexibility over duration, credit, sector and geographical allocations.

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Global Fixed Income GF Absolute Return Bond Fund

The Fund aims to generate positive absolute returns over a rolling 12-month period irrespective of market conditions through a combination of capital growth and income by investing in bond and credit markets worldwide.

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Global Fixed Income GF High Yield Bond Fund

The Fund invests in high yield and selected investment grade bond and credit markets, seeking to take advantage of market inefficiencies through understanding the economic environment and detailed bottom up stock analysis.

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